Assets

Section 1 - Cash and cash equivalents - Item 10

1.1 Cash and cash equivalents: breakdown

  31.12.2017 31.12.2016
a) Cash 50 34
b) On demand deposits at Central banks - -
Total 50 34

Section 2 - Financial assets held for trading - Item 20

2.1 Financial assets held for trading: breakdown by type

Type/Amounts 31.12.2017 31.12.2016
  Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
A. On-balance-sheet assets          
1. Debt securities - - - - - -
1.1 Structured - - - - - -
1.2 Other - - - - - -
2. Equity securities - - - - - -
3. UCITS units - - - - - -
4. Loans - - - - - -
4.1 Reverse repurchase agreements - - - - - -
4.2 Other - - - - - -
Total A - - - - - -
B. Derivatives            
1. Financial derivatives - 35.425 189 - 39.893 7.500
1.1 For trading - 35.425 189 - 39.893 7.500
1.2 connected to the fair value option - - - - - -
1.3 other - - - - - -
2. Credit derivatives - - - - - -
2.1 For trading - - - - - -
2.2 connected to the fair value option - - - - - -
2.3 other - - - - - -
Total B - 35.425 189 - 39.893 7.500
Total (A+B) - 35.425 189 - 39.893 7.500

The financial assets and liabilities held for trading outstanding at 31 December 2017 referred to interest rate derivatives that the merged entity Interbanca S.p.A. negotiated with its Corporate clients up to 2009 to provide them with instruments to hedge risks such as fluctuations in interest rates. In order to remove market risk, all outstanding transactions are hedged with “back to back” trades, in which Interbanca assumed a position opposite to the one sold to corporate clients with independent market counterparties.

2.2 Financial assets held for trading: breakdown by debtor/issuer

Type/Amounts 31.12.2017 31.12.2016
A. On-balance-sheet assets    
1. Debt securities - -
a) Governments and Central banks - -
b) Other public entities - -
c) Banks - -
d) Other issuers - -
2. Equity securities - -
a) Banks - -
b) Other issuers: - -
- insurance companies - -
- financial companies - -
- non-financial companies - -
- other - -
3. UCITS units - -
4. Loans - -
a) Governments and Central banks - -
b) Other public entities - -
c) Banks - -
d) Other issuers - -
Total A - -
B. Derivatives    
a) Banks    
- fair value 17.373 4.340
b) Customers    
- fair value 18.241 43.053
Total B 35.614 47.393
Total (A+B) 35.614 47.393

Section 4 - Available for sale financial assets – Item 40

4.1 Available for sale financial assets: breakdown by type

Type/Amounts 31.12.2017   31.12.2016  
  Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
1. Debt securities 427.833 - 43 353.150 - -
1.1 Structured - - - - - -
1.2 Other 427.833 - 43 353.150 - -
2. Equity securities 3.075 10.223 1.646 2.476 12.647 2.017
2.1 At fair value 3.075 10.223 1.646 2.476 12.647 2.017
2.2 At cost - - - - - -
3. UCITS units - 4.116 9.613 - 3.939 -
4. Loans - - - - - -
Total 430.908 14.339 11.302 355.626 16.586 2.017
     

Level 1 “other debt securities” refer to floating-rate Italian government bonds—mainly BTP Italia. The increase compared to the previous year was mainly the result of the purchases made during the period.

“Equity securities” referred to minority interests: the relevant change was the result of the adjustment of their fair value as well as the sale of the interest in Cassa di Risparmio di Cesena held through Italy's voluntary Interbank Deposit Protection Fund scheme (FITD, Fondo Interbancario di Tutela dei Depositi).

UCITS units were up because of a new acquisition as well as the restructuring of an impaired position.

4.2 Available for sale financial assets: breakdown by debtor/issuer

Type/Amounts 31.12.2017 31.12.2016
1. Debt securities 427.876 353.150
a) Governments and Central banks 427.833 353.150
b) Other public entities - -
c) Banks - -
d) Other issuers 43 -
2. Equity securities 14.944 17.140
a) Banks 22 1.135
b) Other issuers: 14.922 16.005
- insurance companies - -
- financial companies 10.203 8.878
- non-financial companies 4.719 7.127
- other - -
3. UCITS units 13.729 3.939
4. Loans - -
a) Governments and Central banks - -
b) Other public entities - -
c) Banks - -
d) Other issuers - -
Total 456.549 374.229

Section 6 – Due from banks – Item 60

6.1 Due from banks: breakdown by type

Type / Amounts 31.12.2017    31.12.2016   
  BV FV Level 1 FV Level 2 FV Level 3 BV FV Level 1 FV Level 2 FV Level 3
A. Due from Central banks 1.347.384 - - 1.347.384 1.063.831 - - 1.063.831
1. Term deposits - X X X - X X X
2. Legal reserve 37.370 X X X 1.019.000 X X X
3. Repurchase agreements - X X X - X X X
4. Others 1.310.014 X X X 44.831 X X X
B. Due from banks 430.492 - - 430.492 329.527 - - 329.527
1. Loans 430.492 - - 430.492 329.527 - - 329.527
1.1 Current accounts and on demand deposits 324.947 X X X 239.590 X X X
1.2 Term deposits 102.836 X X X 88.034 X X X
1.3 Other loans: 2.709 - - - 1.903 - - -
- Reverse repurchase agreements - X X X - X X X
- Finance leases 601 X X X 1 X X X
- Other 2.108 X X X 1.902 X X X
2. Debt securities - - - - - - - -
2.1 Structured - X X X - X X X
2.2 Other - X X X - X X X
Total 1.777.876 - - 1.777.876 1.393.358 - - 1.393.358

Key

FV= fair value

BV= book value

Lending to other banks is not part of the Group's core business: the excess liquidity ensures the margin required to carry out banking operations as well as the funds necessary to seize potential market opportunities.

The fair value of receivables due from banks is in line with the relevant book value, considering the fact that interbank deposits are short- or very short-term indexed-rate instruments.

Section 7 – Loans to customers – Item 70

7.1 Loans to customers: breakdown by type

Type/Amounts 31.12.2017 31.12.2016
  Carrying amount Fair value Carrying amount Fair value
  Performing Non-performing L1 L2 L3 Performing Non-performing L1 L2 L3
    Acquired Others         Acquired Others      
Loans 5.184.567 798.276 406.446 X X X 4.956.051 562.329 399.948 X X X
1. Current accounts 56.160 51.303 29.575 X X X 51.174 25.112 12.072 X X X
2. Reverse repurchase agreements - - - X X X - - - X X X
3. Loans/mortgages 974.605 64.103 170.598 X X X 724.708 3.466 154.467 X X X
4. Credit cards, personal loans and salary-backed loans 8.353 387.727 912 X X X 15.521 305.697 1.722 X X X
5. Finance leases 1.010.614 259 9.785 X X X 814.914 240 12.947 X X X
6. Factoring 2.611.908 - 171.784 X X X 2.711.340 - 180.244 X X X
7. Other loans 522.927 294.884 23.792 X X X 638.394 227.814 38.496 X X X
Debt securities 46.517 - - X X X - - 9.884 X X X
8 Structured - - - X X X - - - X X X
9 Other 46.517 - - X X X - - 9.884 X X X
Total 5.231.084 798.276 406.446 - - 6.571.304 4.956.051 562.329 409.832 - - 5.957.897
   

Acquired non-performing exposures mainly refer to the distressed retail loans of the NPL area. whose business is by nature closely associated with recovering impaired assets. Therefore, loans in the DRL sector are recognised under bad loans or unlikely to pay. In particular, those loans maintain the same classification as that assigned by the invoice seller, provided the latter is subject to the same law as Banca IFIS: otherwise, if the Bank has not ascertained the debtor's state of insolvency, those loans are classified as unlikely to pay.

7.2 Loans to customers: breakdown by debtor/issuer

Type/Amounts 31.12.2017   31.12.2016   
  Performing Non-performing   Performing Non-performing  
    Acquired Others   Acquired Others
1. Debt securities: 46.517 - - - - 9.884
a) Governments - - - - - -
b) Other public entities - - - - - -
c) Other issuers 46.517 - - - - 9.884
- non-financial companies 5.009 - - - - 9.884
- financial companies 41.508 - - - - -
- insurance companies - - - - - -
- other - - - - - -
2. Loans to: 5.184.567 798.276 406.446 4.956.051 562.329 399.948
a) Governments 122.276 - 14.522 95.011 - 11.484
b) Other public entities 622.604 6 39.763 799.917 1 42.229
c) Other parties 4.439.687 798.270 352.161 4.061.123 562.328 346.235
- non-financial companies 3.653.244 70.529 279.681 3.344.966 27.595 280.942
- financial companies 154.837 578 36.915 72.206 99 29.969
- insurance companies 16 1 - - - -
- other 631.590 727.162 35.565 643.951 534.634 35.324
Total 5.231.084 798.276 406.446 4.956.051 562.329 409.832
 

7.4 Finance leases

  Future minimum lease payments Current value of future minimum lease payments
Within 1 year 346.480 298.372
Between 1 and 5 years 756.652 710.715
Over 5 years 7.451 7.325
Total 1.110.583 1.016.412
Deferred financial profits - -
Bad debt provision (15.580) (15.580)
Recognised receivables 1.095.003 1.000.832
 

The reported amounts refer to IFIS Leasing. 

Section 12 – Property, plant and equipment and investment property – Item 120

12.1 Property, plant and equipment for functional use: breakdown of assets measured at cost

Assets/Amounts 31.12.2017 31.12.2016
1. Owned 123.564 105.877
a) Land 35.892 35.892
b) Buildings 61.551 62.735
c) Furnishings 1.924 1.780
d) Electronic systems 5.000 4.298
e) Others 19.197 1.172
2. 2.2 Acquired under finance leases 3.597 3.751
a) Land - -
b) Buildings 3.597 3.718
c) Furnishings -  
d) Electronic systems -  
e) Others - 33
Total 127.161 109.628

The increase in this line item compared to the end of 2016 is largely attributable to the contribution from Two Solar Park 2008 S.r.l..

At the end of the period, the properties recognised under property, plant and equipment and investment property included the important historical building “Villa Marocco”, located in Mestre – Venice and housing Banca IFIS's registered office, as well as two buildings in Milan housing the offices of some Group companies.

Since Villa Marocco is a luxury property, it is not amortised, but it is tested for impairment at least annually. To this end, they are appraised by experts specialising in luxury properties. During the year, there were no indications requiring to test the assets for impairment.

12.2 Investment property: breakdown of assets measured at cost

Assets/Amounts 31.12.2017    31.12.2016   
  Carrying amount Fair value   Carrying amount Fair value  
    L1 L2 L3   L1 L2 L3
1. Owned 720 - - 880 720 - - 926
a) Land - - - - - - - -
b) Buildings 720 - - 880 720 - - 926
2. Acquired under finance leases - - - - - - - -
a) Land - - - - - - - -
b) Buildings - - - - - - - -
Total 720 - - 880 720 - - 926
     

12.5 Property, plant and equipment for functional use: annual changes

  Land Buildings Furnishings Electronic systems Others Total
 31.12.2017
A. Gross opening balance 35.892 86.330 10.932 24.367 2.181 159.702
A.1 Total net depreciation and impairment losses - (19.877) (9.152) (20.069) (976) (50.074)
A.2 Net opening balance 35.892 66.453 1.780 4.298 1.205 109.628
B. Increases - 477 488 2.101 19.082 22.148
B.1 Purchases - 477 488 2.101 19.082 22.148
of which: business combinations - - - - 17.732 17.732
B.2 Capitalised improvement expenses - - - - - -
B.3 Reversals of impairment losses - - - - - -
B.4 Fair value gains taken to: - - - - - -
a) equity - - - - - -
b) profit or loss - - - - - -
B.5 Exchange gains - - - - - -
B.6 Transfers from investment property - - - - - -
B.7 Other changes - - - - - -
C. Reductions - (1.782) (344) (1.399) (1.089) (4.614)
C.1 Sales - - (3) (4) (193) (200)
C.2 Depreciation - (1.782) (341) (1.358) (896) (4.377)
C.3 Impairment losses taken to: - - - - - -
a) equity - - - - - -
b) profit or loss - - - - - -
C.4 Fair value losses taken to: - - - - - -
a) equity - - - - - -
b) profit or loss - - - - - -
C.5 Exchange losses - - - - - -
C.6 Transfers to - - - - - -
a) Investment property - - - - - -
b) Assets under disposal - - - - - -
C.7 Other changes - - - (37) - (37)
D. Net closing balance 35.892 65.148 1.924 5.000 19.197 127.161
D.1 Total net depreciation and impairment losses - 21.577 9.374 20.681 2.102 53.734
D.2 Gross closing balance 35.892 86.725 11.298 25.681 21.299 180.895
E. Measurement at cost - - - - - -
 

Property, plant and equipment for functional use are measured at cost and are depreciated on a straight-line basis over their useful life, with the exclusion of land with an indefinite useful life and the “Villa Marocco” property, whose residual value at the end of its useful life is expected to be higher than its book value.

Property, plant and equipment not yet brought into use at the reporting date are not depreciated.

12.6 Investment property: annual changes

  31.12.2017 
  Land Buildings
A. Opening balance - 720
B. Increases - -
B.1 Purchases - -
B.2 Capitalised improvement expenses - -
B.3 Fair value gains: - -
B.4 Reversals of impairment losses - -
B.5 Exchange gains - -
B.6 Transfers from property for functional use - -
B.7 Other changes - -
C. Reductions - -
C.1 Sales - -
C.2 Depreciation - -
C.3 Fair value losses - -
C.4 Impairment losses - -
C.5 Exchange losses - -
C.6 Transfers to other asset portfolios - -
a) assets for functional use - -
b) non-current assets under disposal - -
C.7 Other changes - -
D. Closing balance - 720
E. Measurement at fair value - 880

Buildings held for investment purposes are measured at cost and refer to leased property. They are not amortised as they are destined for sale.

Section 13 – Intangible assets – Item 130

13.1 Intangible assets: breakdown by asset type

Assets/Amounts 31.12.2017  31.12.2016 
  Finite life Indefinite life Finite life Indefinite life
A.1 Goodwill: X 834 X 799
A.1.1 attributable to the group X 834 X -
A.1.2 attributable to non-controlling interests X - X -
A.2 Other intangible assets 23.649 - 14.182 -
A.2.1 Assets measured at cost: 23.649 - 14.182 -
a) Internally generated intangible assets - - - -
b) Other assets 23.649   - 14.182 -
A.2.2 Assets measured at fair value: - - - -
a) Internally generated intangible assets - - - -
b) Other assets - - - -
Total 23.649 834 14.182 799

Goodwill, amounting to 834 thousand Euro, arises from the line-by-line consolidation of the Polish subsidiary IFIS Finance Sp. Z o. o..

The above-mentioned goodwill was tested for impairment in accordance with IAS 36 (Impairment Test). To do so, goodwill was allocated to the cash-generating unit corresponding to the whole company IFIS Finance, as it represents an autonomous business segment which cannot be further broken down. The test was carried out by applying the value in use method based on the projection of expected cash flows for an explicit period of 5 years. Expected cash flows were discounted based on the company’s estimated cost of capital calculated using the Capital Asset Pricing Model. Expected cash flows were estimated based on the most recently approved business plan and financial projections based on the subsidiary’s average growth trends. The terminal value was calculated assuming that the last net cash flow in the explicit planning period is replicable. The impairment test did not reveal any impairment losses to be recognised in profit or loss.

Finally, goodwill underwent a sensitivity analysis based on the cost of capital, using a fluctuation range equal to 5%; the test carried out with the control method confirmed the reliability of the reported amount.

The change in the value of goodwill compared to the previous year is attributable to the impact of changes in year-end exchange rates.

Other intangible assets at 31 December 2017 refer exclusively to software purchase and development, amortised on a straight-line basis over the estimated useful life, which is 5 years from deployment.

13.2 Intangible assets: annual changes

    Goodwill Other intangibleassets: internally generated  Other intangibleassets: other  Total
 31.12.2017
    FINITE INDEF FINITE INDEF  
A. Opening balance 799 - - 14.182 - 14.981
A.1 Total net depreciation and impairment losses - - - - - -
A.2 Net opening balance 799 - - 14.182 - 14.981
B. Increases 35 - - 16.219 - 16.254
B.1 Purchases - - - 16.219 - 16.219
of which: business combinations - - - - - -
B.2 Increases in internally generated intangible assets - - - - - -
B.3 Reversals of impairment losses - - - - - -
B.4 Fair value gains: - - - - - -
- to equity - - - - - -
- to profit or loss - - - - - -
B.5 Exchange gains 35 - - - - 35
B.6 Other changes - - - - - -
C. Reductions - - - 6.752 - 6.752
C.1 Sales - - - 2.016 - 2.016
C.2 Impairment losses and amortisation: - - - 4.736 - 4.736
- Amortisation expense - - - 4.736 - 4.736
- Impairment losses - - - - - -
+ equity - - - - - -
+ profit or loss - - - - - -
C.3 Fair value losses: - - - - - -
- to equity - - - - - -
- to profit or loss - - - - - -
C.4 Transfer to non-current assets under disposal - - - - - -
C.5 Exchange losses - - - - - -
C.6 Other changes - - - - - -
D. Net closing balance 834 - - 23.649 - 24.483
D.1 Total net amortisation, impairment losses and reversals of impairment losses - - - - - -
E. Gross closing balance 834 - - 23.649 - 24.483
F. Measurement at cost - - - - - -

Key

Fin: finite useful life

Indef: indefinite useful life

Purchases refer exclusively to investments for the enhancement of IT systems.

Section 14 – Tax assets and liabilities – Item 140 of assets and 80 of liabilities

14.1 Deferred tax assets: breakdown

The main types of deferred tax assets are set out below.

Deferred tax assets 31.12.2017 31.12.2016
Loans to customers (Law 214/2011) 214.642 192.310
Past tax losses that can be carried forward 91.395 0
ACE - Aid for economic growth that can be carried forward 25.032 0
Differences from PPA 15.801 253.030
Loans to customers 3.095 42.978
Equipment rental 1.981 1.460
Provisions for risks and charges 11.588 1.209
Others 3.780 2.193
Total 367.314 493.180

Deferred tax assets totalled 367,3 million Euro and can be classified as follows: 214,6 million Euro in impairment losses on receivables that can be deducted in the following years, 91,4 million Euro in past tax losses that can be carried forward arising from the mergers of Interbanca and IFIS Factoring, 25 million Euro in ACE (Aid for Economic Growth) benefits that can be carried forward, and the remainder referred to mismatch arrangements—including the difference recognised at the time of the business combination for the subsidiary IFIS Leasing (15,8 million Euro), which will be reclassified with the merger in 2018. The item Other includes temporary differences on various costs with deferred deductibility.

The 125,9 million Euro decline in deferred tax assets was essentially attributable to the reconciliation of the item Differences from PPA (receivables) following the merger of Interbanca.

Finally, please note that, pursuant to the current Tax Consolidation arrangements, deferred tax assets related to the taxable profit for the period were included in Other Assets as an approximately 54,1 million Euro Receivable due from La Scogliera. 

14.2 Deferred tax liabilities: breakdown

The main types of deferred tax liabilities are shown below.

Deferred tax liabilities 31.12.2017 31.12.2016
Loans to customers 27.121 13.293
Property, plant and equipment 9.001 9.433
Available for sale securities 1.798 394
Others 679 1.314
Total 38.599 24.434

The item deferred tax liabilities included 23,6 million Euro in receivables for interest on arrears that will be taxed upon receipt, 9 million Euro in the revaluation of the property in Milan, and 3 million Euro in other mismatches of trade receivables.

14.3 Changes in deferred tax assets (recognised through profit or loss)

  31.12.2017 31.12.2016
1. Opening balance 492.643 39.359
2. Increases 21.602 458.021
2.1 Deferred tax assets recognised in the year 20.559 7.494
a) relative to previous years 814 30
b) due to change in accounting standards - -
c) reversals of impairment losses - -
d) other 19.745 7.464
2.2 New taxes or increases in tax rates - -
2.3 Other increases - -
Business combinations 1.043 450.527
3. Decreases 147.349 4.737
3.1 Deferred tax assets reversed during the year 137.031 4.737
a) reversals 137.031 4.737
b) impairment losses due to unrecoverability - -
c) change in accounting standards - -
d) other - -
3.2 Reductions in tax rates - -
3.3 Other reductions 10.318 -
a) conversion into tax credits as per Italian Law 214/2011 10.318 -
b) other - -
4. Closing balance 366.896 492.643
 

Concerning the changes in deferred tax assets (recognised through profit or losses), please note that:

  • increases included approximately 1 million Euro in Deferred Tax Assets resulting from the inclusion of the company TWO Solar Park in the scope of consolidation
  • the Deferred Tax Assets related to the taxable profit for the period were not included, as they were included in other assets as an approximately 54,1 million Euro Receivable due from the Parent/Consolidating Company La Scogliera under current tax consolidation arrangements.

14.3.1 Changes in deferred tax assets as per Italian Law 214/2011 (recognised through profit or loss)

  31.12.2017 31.12.2016
     
1. Opening balance 191.417 -
2. Increases 37.091 191.417
2.1 Other changes 37.091 191.417
3. Decreases 13.852 -
3.1 Reclassifications 3.534 -
3.2 Conversion in tax credits 10.318 -
a) deriving from losses for the year 9.242 -
b) deriving from tax losses 1.076 -
3.3 Other reductions - -
4. Closing balance 214.656 191.417
     

14.4 Changes in deferred tax liabilities (recognised through profit or loss)

  31.12.2017 31.12.2016
1. Opening balance 23.219 15.643
2. Increases 18.095 9.561
2.1 Deferred tax liabilities recognised in the year 18.035 99
a) relative to previous years 9.679 -
b) due to change in accounting standards - -
c) other 8.338 99
2.2 New taxes or increases in tax rates - -
2.3 Other increases 78 -
Business combinations - 9.462
3. Decreases 4.514 1.985
3.1 Deferred tax liabilities reversed during the year 4.514 695
a) reversals 4.435 694
b) due to change in accounting standards - -
c) other 79 1
3.2 Reductions in tax rates - -
3.3 Other reductions - 1.290
4. Closing balance 36.800 23.219
 

14.5 Changes in deferred tax assets (recognised through equity)

  31.12.2017 31.12.2016
1. Opening balance 537 63
2. Increases - 584
2.1 Deferred tax assets recognised in the year - 104
a) relative to previous years - -
b) due to change in accounting standards - -
c) other - 104
2.2 New taxes or increases in tax rates - -
2.3 Other increases - -
Business combinations - 480
3. Decreases 119 110
3.1 Deferred tax assets reversed during the year 119 110
a) reversals 98 110
b) impairment losses due to unrecoverability - -
c) due to change in accounting standards - -
d) other 21 -
3.2 Reductions in tax rates - -
3.3 Other reductions - -
4. Closing balance 418 537
         

14.6 Changes in deferred tax liabilities (recognised through equity)

  31.12.2017 31.12.2016
1. Opening balance 1.215 5.753
2. Increases 662 835
2.1 Deferred tax liabilities recognised in the year 662 268
a) relative to previous years - 17
b) due to change in accounting standards - -
c) other 662 251
2.2 New taxes or increases in tax rates - -
2.3 Other increases - -
Business combinations - 567
3. Decreases 78 5.373
3.1 Deferred tax liabilities reversed during the year - 5.373
a) reversals - 5.373
b) due to change in accounting standards - -
c) other - -
3.2 Reductions in tax rates - -
3.3 Other reductions 78 -
4. Closing balance 1.799 1.215
 

Section 16 - Other assets – Item 160

16.1 Other assets: breakdown

  31.12.2017 31.12.2016 RESTATED
     
Receivables due from tax authorities 48.966 57.737
Prepayments and accrued income 59.609 39.905
Guarantee deposits 1.480 1.211
Other items 162.922 160.490
Total 272.977 259.343
 

Receivables due from tax authorities included 5,7 million Euro in receivables for payments on account for the virtual stamp duty, 9,9 million Euro in funds placed in an escrow account pending the resolution of a tax dispute, and 24,5 million Euro in VAT credits arising from the group settlement for the year 2017 and that can be carried forward to the following year. 

Other items included 107,7 million Euro in receivables due from the parent La Scogliera S.p.A., including 54,1 million Euro related to the taxable profit for the year transferred to the Consolidating Company under the tax consolidation regime and 53,6 million Euro in relevant corporate income (IRES) tax credits claimed by the latter for excess tax payments from prior years.

Finally, the line item prepayments and accrued income included 38,3 million Euro in deferred costs associated with the NPL Area's judicial debt collection proceedings pending a garnishment order from the judge. 

Factsheet
2017

Price 31/12/2017 €40.77

Yield 2.45%

Market Cap €2.2bn

Dividend €1/share

Read all

KEY HIGHLIGHTS

Milan IF.MI

Fitch, BB+ outlook stable

Price
to 31/12/2017
€40.77

Yield
to 31/12/2017
2.45%

Market Cap
to 31/12/2017
€2.2bn

Dividend
 
€1/share

BACKGROUND

  • Banca IFIS (IF.MI) is a specialty finance player, specialized in financing SME’s with a complete range of financial tools, from short-term to medium/longer term finance and structured finance.
  • Banca IFIS is also a leader in the Italian NPL market and present in the tax receivables sector.
  • The Group has a strong and diversified business model that enables outstanding results in terms of profitability and credit quality.
  • There are three key pillars for management decision-making: profitability, liquidity and solidity.
  • Founded in 1983 by Sebastien Egon Furstenberg, the current chairman, Banca IFIS has been listed on the Milan Stock Exchange (Star segment) since 2003, with a market cap of over €2 bln at the end of 2016.
  • The Bank acquired the Interbanca Group in 2016, Cap.Ital.Fin S.p.A. at the start of 2018 and announced the acquisition of Credifarma S.p.A.
  • On the funding side, the bank successfully launched rendimax, an online savings account in 2008 and completed in 2017 the issuance of a €400 mln Tier 2 bond as well as announcing a €5 bln EMTN programme.

Share evolution

NBI contribution by segment

Total Loans
Eu Mn

NPL managed and purchased
(gross BV) - Eu Bn

Share evolution
NBI contribution by segment
Total Loans<br />Eu Mn
NPL managed and purchased<br />(gross BV) - Eu Bn

FUTURE OPPORTUNITIES FOR GROWTH

  • Banca IFIS is well placed to continue to capitalize on the restructuring of bank balance sheets in Italy and the rest of Europe through acquisitions of NPL portfolios.
  • Continued organic focus on SME trade finance (micro, small and medium sized enterprises) that is less competitive and traditional banks find difficult to service.
  • Leveraging the acquisition of the former Interbanca Group, finalized in late November of 2016.
  • Completes full range of services for SMEs.
  • Acquisition brings valuable skills, size and capital to the Group.
  • Development in financing the different production chains in Italy.
  • ONGOING: in 2018 focus on the acquisitions of Credifarma (financing Italian pharmacies) and Cap.Ital.Fin S.p.A. (salary-backed loans).

Four years of consistent
and solid growth

Shareholders

Four years of consistent<br />and solid growth
Shareholders

The chart shows the Shareholders of Banca IFIS that directly or indirectly hold financial instruments representing the capital with voting rights of Banca IFIS over 3%, or over 2% for Shareholders who are also Directors of the Bank.

Notes to the Consolidated Financial Statements
Download Center